BiggerPockets Real Estate Podcast Feb 2025 Housing Market Update: Are Our Predictions Already Wrong?
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Feb 14, 2025 The housing market in 2025 is showing surprising resilience, with home prices continuously rising despite interest rates in the sevens. A Q1 update reveals shifting trends in mortgage delinquencies and inventory levels, prompting questions about potential price drops. One troubling metric could foreshadow market distress, while discussions about the stability of buyer demand add to the complexity. Experts also explore alternative investment strategies, emphasizing the adaptation needed to navigate this evolving landscape.
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Real Home Price Changes
- Nationally, home prices increased 4.8% year-over-year, exceeding the long-term average of 3.4%.
- However, real price changes, adjusted for inflation, show a relatively flat market.
Widespread Market Growth
- Every major U.S. metro area experienced year-over-year price growth, an unusual occurrence since the pandemic's peak.
- This broad growth contrasts typical market fluctuations where a small percentage of markets experience declines.
Market Performance Divergence
- Markets like Tampa and Austin, which saw corrections, are now showing modest price increases.
- Midwest cities like Cleveland and Milwaukee are experiencing double-digit growth despite higher interest rates.
